WASHINGTON (AP) — Apartment construction plunged sharply in October, as the pace of homebuilding slipped amid a broader cooling of the real estate market.
The Commerce Department says housing starts — both houses and apartments— fell last month 11 percent to a seasonally adjusted annual rate of 1.06 million homes.
Single-family house construction declined, but last month’s drop mostly stemmed from a 25.5 percent slide in the volatile multi-family category that includes apartments.
Home construction has climbed a solid 10 percent year-to-date. But the market’s upward trajectory appears to have stalled as rising prices, tight inventories and economic uncertainty have sidelined many would-be buyers.
Still, building permits increased 4.1 percent in October to an annual rate of 1.15 million. That’s a sign that apartment construction could soon rebound.
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